Circle8 Group, Inc. (CIRC) vs Mastech Digital, Inc (MHH)

Circle8 Group, Inc. and Mastech Digital, Inc are both Staffing & Employment Services companies. Mastech Digital, Inc is the larger, with a market value of $86.7M against $40.0M — 2.2× the size. Circle8 Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Mastech Digital, Inc trades at 43.2×. Circle8 Group, Inc. grew revenue faster over the last twelve months: 80.5% against −11.8%. Mastech Digital, Inc has the higher net margin (1.18% vs −18.8%) and the higher return on invested capital (1.73% vs −14.4%). Across the 18 metrics below, Mastech Digital, Inc leads on 11 and Circle8 Group, Inc. on 7.

Valuation

Metric CIRC MHH Staffing & Employment Services median
P/E n/m 43.24 24.32
P/S 0.03 0.50 0.41
P/B n/m 0.96 1.28
Price to free cash flow n/m 9.30 18.57
EV/EBITDA n/m 10.55 10.55
EV/Sales 0.40 0.32 0.40
Earnings yield (620.59%) 2.31% 0.99%
Free cash flow yield (84.57%) 10.75% 2.79%

Profitability

Metric CIRC MHH Staffing & Employment Services median
Gross margin 8.58% 27.97% 23.11%
Operating margin (7.80%) 0.88% 0.08%
Net margin (18.78%) 1.18% 0.23%
Free cash flow margin (2.91%) 5.38% 1.23%
Return on equity 682.76% 2.31% 2.31%
Return on assets (28.02%) 1.89% 0.00%
Return on invested capital (14.44%) 1.73% 0.00%

Growth

Metric CIRC MHH Staffing & Employment Services median
Revenue growth (TTM) 80.53% (11.76%) 0.69%
EPS growth (last fiscal year) 70.65% (82.14%) —
Revenue growth, 5-year CAGR 321.02% (0.28%) 1.23%
Net income growth, 5-year CAGR 0.00% (42.70%) 0.00%

Health

Metric CIRC MHH Staffing & Employment Services median
Debt to equity (12.33) 0.00 0.08
Current ratio 0.39 4.10 1.50
Net debt to EBITDA (0.74) (9.32) (0.22)

Dividend

Metric CIRC MHH Staffing & Employment Services median
Dividend yield — — 2.16%
Payout ratio — 0.00 0.30

Size

Metric CIRC MHH Staffing & Employment Services median
Market cap 40.04m 86.67m 590.17m

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